Income Tax

Income Tax Rates		2012/13	2011/12
Basic rate band - income up to		£34,370	£35,000
Starting rate for savings		*10%	*10%
Basic rate		20%	20%
Dividend ordinary rate		10%	10%
Higher rate - income over		£34,370	£35,000
Higher rate		40%	40%
Dividend upper rate		32.5%	32.5%
Additional rate - income over		£150,000	£150,000
Additional rate		50%	50%
Dividend additional rate		42.5%	42.5%
* Starting rate is for savings income up to the starting rate limit of £2,710 (£2,560) within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income.
Trusts
For interest in possession trusts on all income, and other trusts on the first £1,000 of income ("standard rate band"):
dividend ordinary rate	5	10%	10%
savings income	5	20%	20%
other income	5	20%	20%
Income of other trusts above £1,000 is taxed at the special trust rates:
rate applicable to trusts		50%	40%
dividend trust rate		42.5%	42.5%
Personal allowance (PA)
under 65	1,4	£8,105	£7,475
65 to 74*	1,2,4	£10,500	£9,490
75 and over*	1,2,4	£10,660	£10,090
Blind person's allowance		£2,100	£1,980
Married couple's allowance (MCA)
Either partner born before 6 April 1935 (relief restricted to 10%)	1,3,4	£7,705	£7,295
Tax Shelters
Enterprise Investment Scheme (EIS) up to		£1,000,000	£500,000
Venture Capital Trust (VCT) up to		£200,000	£200,000
Golden Handshake max.		£30,000	£30,000
Rent a Room - exempt on gross annual rent up to		£4,250	£4,250
Construction Industry Scheme deduction rate:
Standard (registered)		20%	20%
Higher (not registered)		30%	30%

Ages are as the end of the tax year. Ages for the MCA relate to the elder spouse or civil partner.
The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £25,400 (£24,000) until the basic allowance is reached.
Similar limits apply to the married couple's allowance. The reduction in allowance is subject to a minimum level of £2,960. (For couples married before 5 December 2005, only the husband's income is taken into account. For those married on or after 5 December 2005 or in a civil partnership, only the higher earner’s income is taken into account).
The personal allowance, including the minimum age-related allowance, is reduced by £1 for every £2 that net adjusted income exceeds £100,000.
Where there are several trusts created by the same settlor, the "standard rate band" is divided equally between them, subject to a minimum band of £200 for each trust.